Venezuela’s state-run oil company begins demanding payment in euros as US dollar weakens

CARACAS, Venezuela: Venezuela’s state-run oil firm is starting to demand payment in euros a measure aimed at protecting revenues from a weakening U.S. dollar, Venezuela’s oil minister said Tuesday.Rafael Ramirez said the initiative by Petroleos de Venezuela SA, or PDVSA, to charge euros rather than U.S. dollars was “advancing,” but not yet completed.

“The issue of euros in new contracts is going to be progressive,” Ramirez told a news conference. “Only the first steps have been taken. A specific policy has not been established.”

He said some new contracts require payment in euros.

PDVSA decided to demand payment in euros as a means of protecting the company from the falling value of the dollar.

The euro hit an all-time high of US$1.59 on Monday, but fell slightly on Tuesday to US$1.56 after the U.S. Federal Reserve cut its benchmark interest rate.